23XI Racing and Front Row Motorsports have taken their fight with NASCAR to the courtroom, and early signs suggest they’re gaining momentum.
After NASCAR EVP Scott Prime faced tough questioning from the teams’ attorneys, new details emerged that strengthen their case, pointing directly to CEO Jim France.
What’s even more staggering is that it’s NASCAR President Steve O’Donnell who pointed the finger.
What Did Steve O’Donnell Say About Jim France?
O’Donnell told the court that in early 2022, teams raised concerns with NASCAR, calling for a fairer revenue model and stressing that the old system wasn’t sustainable.
He attended a meeting with reps from four teams, who pressed for an early start to negotiations on a new charter agreement, arguing they were fighting for their financial survival. The window wasn’t set to open until July 2023.
According to O’Donnell, during that initial meeting, Jeff Gordon, the four-time series champion and Hendrick Motorsports vice chair, asked specifically if the France family would consider a new revenue model.
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NASCAR Executive Vice-President and Chief Venue & Racing Innovations Officer Ben Kennedy, great-grandson of NASCAR founder Bill France Sr., said yes.
“Ben said yes,” O’Donnell said.
“As it turned out,” Jeffrey Kessler, attorney for 23XI Racing and Front Row, countered, “Jim France was not open to a new model, right?”
“No,” O’Donnell replied.
O’Donnell, appearing as an adverse witness, confirmed NASCAR knew the teams were under financial pressure.
Communications highlighted the sanctioning body’s fear of a breakaway series like LIV Golf and its annoyance at Tony Stewart’s short-lived SRX summer short-track series.
Kessler argued that NASCAR’s track exclusivity deals were designed to keep teams in line, barring them from running stock car races at any venues on the Cup Series schedule.
The charter system, introduced in 2016, was designed to bring stability to the teams, with the charters being renewable.
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Negotiations over charter extensions dragged on for more than two years, with teams pressing NASCAR for terms to improve their finances.
When the 2024 playoffs approached, NASCAR handed over a 112-page deal that left out most of the teams’ requests and imposed a six-hour deadline to sign.
Kessler spent Thursday portraying Jim France as the key holdout against 23XI and Front Row’s demands. NASCAR, founded 76 years ago by the late Bill France Sr., remains in the hands of the Florida-based family, with Jim France as its youngest son.
Kessler grilled NASCAR President Steve O’Donnell for more than three hours in a heated session, at times raising his voice.
Using internal communications, he highlighted frustration among non-France executives over the slow negotiations and Jim France’s refusal to grant teams permanent charters.